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AFI Europe Romania Q3 and First 9 months of 2015 Results

Bucharest, 23.11.2015:

AFI Europe Romania published its Q3 and first 9 months of 2015 financial results, generated a Net Operating Income (NOI) of EUR 10.2 million in Q3 and close to EUR 30 million in the first 9 months of 2015, representing 8.2% higher results compared to the same periods in 2014.

Total value of the completed projects, shopping malls AFI Cotroceni, AFI Ploiesti and the first 3 office buildings of AFI Park, increased to close to EUR 600 million, as of September 30, 2015.

AFI Cotroceni Shopping Mall in Bucharest, the company’s largest and most important asset, generated a Net Operating Income (NOI) of EUR 7.7 million in Q3 2015, representing 3.3% higher results than 2014 and EUR 23 million in the first 9 months of 2015, representing 4% higher results compared to the same period in 2014.

The shopping mall was valued as of September 30, 2015 at EUR 434 million, representing an increase of 8.2% compared to last year.

AFI Cotroceni retailer’s sales (Turn-Over) excluding the hypermarket increased by 7.3% in Q3 and by 7.4% in the first 9 months of 2015, compared to the same periods in 2014.

AFI Ploiesti shopping mall net operating income (NOI) resulted in EUR 3.2 million for the first 9 months of 2015 representing a 7% increase compared to the same period last year.

AFI Ploiesti results show significant increase in retailer’s sales (Turn-Over) which was increased in Q3, 2015 by 28% and by 23% in the first 9 months of 2015, compared to the same periods in 2014. Current occupancy rate of the shopping mall in Ploiesti exceeds 99%.

AFI Ploiesti was valued at EUR 67.7 million as of September 30, 2015, as opposed to EUR 66 million last year.

“AFI Europe Romania has concluded Q3 and the first 9 months of 2015 with excellent operational and financial results as shown by the growth in NOI (Net Operating Income) of our income generating assets in Romania by 8.2% and by the valuation of our existing assets, 2 shopping malls and 3 office buildings, rising to a value close to EUR 600 million. Currently the portfolio in Romania consists of 150,000 sqm of leasable areas with an average occupancy rate in all income producing assets of over 98%. Additional 32,000 sqm of GLA are to be added to the portfolio upon the completion of AFI Park 4&5 in January 2016. The good financial results coupled with positive microeconomic numbers of Romania encourage us to start more projects during next year such as: The new shopping Mall to be developed in Brasov (45,000 sqm GLA) and the Office Park to be developed on Progresului Boulevard in Bucharest (50,000 sqm GLA), which are planned to commence construction in 2016”, commented David Hay, CEO AFI Europe Romania.

 

AFI Properties Results; Q3 2015 Profits of EUR 34 million, Up 22%, Announces Dividend Distribution of EUR 45 million

AFI Properties“, the parent company of “AFI Europe“, has published its Q3 and first 9 months of 2015 financial reports, registering profits of EUR 34 million in Q3 and EUR 46 million for the first 9 months of 2015. AFI Properties also announced a net operating income (NOI) of EUR 20 million for Q3 2015 and EUR 61 million for the first 9 months of 2015 representing an increase of 2.3% in comparison to the first 9 months of 2014. Results for the first 9 months of 2015 compared to 2014 were influenced by the sale of the shopping mall in Pardubice in the Czech Republic and the weakening of the EURO currency vs. the Shekel. The operational profit increased in the first 9 months of 2015 by 24% to EUR 98 million compared to same period in 2014.

AFI Properties announced an additional dividend distribution to its shareholders of approximately EUR 45 million following EUR 18 mil previously distributed this year.

Currently, AFI Properties through its subsidiaries is developing 75,000 sqm of offices (32,000 sqm in AFI Park 4&5 in Bucharest) and 575 residential units in addition to several hundreds of thousands of sqm which are currently in design phase.

AFI Properties currently owns 548,000 sqm of income producing assets.

About AFI Properties

AFI Properties is a member of the AFI Group, an international holdings and investments conglomerate with subsidiaries that engage in real estate, construction, infrastructure, industry and hotels (www.afigroup-global.com).

The company is active in the income producing and development property market since 1971. AFI Properties has been listed on the Tel-Aviv stock exchange in 2004. The company has been active in Europe since 1997 through its subsidiary AFI Europe mainly in the CEE markets. AFI Properties is ranked “BBB+ positive” by S&P and “A3 stable” by Midroog (a subsidiary of Moody’s).

About AFI Europe

AFI Europe, a subsidiary of AFI Properties, is one of the leading real estate development, management and investment companies, which is operating in Central and Eastern Europe since 1997.

AFI Europe’s diversified portfolio consists of shopping malls and retail properties, business parks and large-scale residential and mixed-use developments. AFI Europe operates in Romania, Czech Republic, Poland, Germany, Bulgaria, Serbia, Hungary and Latvia.

About AFI Europe Romania:

AFI Europe operates in Romania since 2005. The company has developed and is managing “AFI Cotroceni”, the largest and most dominant shopping mall in Romania and among the leading shopping malls in the CEE region. The project spreads over a leasable area of more 82,000 sqm (GLA) and offers to its visitors a large entertainment area with multiple leisure options and a variety of over 300 shops of local and international brands, visited by 52,000 customers per day.

In October 2013, AFI Europe inaugurated AFI Ploiesti, the first and only modern shopping mall developed in the city centre of Ploiesti, following an investment of over EUR 50 million. The shopping mall offers a total gross leasable area (GLA) of 33,000 square meters spreading over two retail floors occupied by 100 national and international brands, including more than 7,000 sqm of entertainment.

Adjacent but fully integrated into AFI Cotroceni shopping mall, AFI Europe Romania is currently developing AFI Park, Bucharest’s newest and most advanced Class A business Park, which has achieved 98% occupancy rate. AFI Park offers 70,000 of office leasable area, currently targeted by multinational IT&C corporations. The first office building “AFI Park 1“, with 12,250 sqm of leasable area, is 100% leased. In April 2014 AFI Europe inaugurated “AFI Park 2” with 12,200 sqm of GLA and is 100% leased, while “AFI Park 3“, delivered  in December 2014, is leased to Endava Romania and TELUS International Europe. In April 2014 AFI Europe Romania has also commenced construction of AFI Park 4&5 office building that will offer additional 32,000 sqm of gross leasable area to the project and is planned to be delivered in January 2016.

In July 2015 AFI Europe has signed an agreement to purchase a 40,000 sqm plot in the City Centre of Brasov for the development of a 45,000 sqm GLA shopping mall and 11,000 sqm GLA office project.

In addition, AFI Europe Romania has two mix use projects to be developed in the near future on the company’s 80,000 sqm land plot in Arad where a Retail park is to be developed and the mix use project to be developed on the 148,000 sqm land plot in Bucurestii Noi district 1 of Bucharest.

In the office segment, AFI will develop AFI Tech Park Bucharest, a 50,000 sqm of GLA Class A Business Park to be located in close proximity to the J.W. Marriott hotel and the Romanian Parliament. The business park will comprise of 2 low rise office buildings and one office tower, with ample green areas, a high tech/campus style environment in an urban complex with a central plaza & gardens.